VT advice motorloan balloon

[MCRMatt]

Re: VT advice motorloan balloon

It's 5000 miles a year, it is on there just might be unclear from the photos

[Amethyst]

Re: VT advice motorloan balloon

Blimey, that's low. Can you tell me the paragraph pls. xx ( it should specify the 'penalties' if you go over that etc too )

[MCRMatt]

Re: VT advice motorloan balloon

Tell me about it but when I bought the car I told the sales guy I would be doing at least 12k per year and he said don't worry about it they never check it- on the photos on the thread its the middle right photo and bottom right corner in the box above the signature box- doesn't state charge for pence per mile for going over allowance but says unless conditions have been strictly adhered to they will not purchase it- I have gone over the mileage by around 3j at present.

Thanks

[Amethyst]

Re: VT advice motorloan balloon

Ahh yes got it.

Sounds like a bit of misselling there.

It doesn't give a penalty for the mileage that I can see, presumably it is simply they can refuse to take the car back and force you to pay the balloon, so Option 1 ( para 4.4 ) and possibly if you try to return under Option 2 you would get a much reduced offer and still have to pay a fair chunk of that balloon payment. Pretty sure it should be spelt out though.

[R0b]

Re: VT advice motorloan balloon

Well, before you consider any legal action you might want to go down the formal complaint route. I expect them the first line of support from Fiat and no doubt their final decision might remain the same. If you take it to the Financial Ombudsman they may or may not agree with you or just simply say because it says fixed sum loan it must be a fixed sum loan.

Or you can head straight to the legal proceedings and then fire off a letter before action. You don't need to give them notification of rescission of the contract now you can seek a rescission and any sums paid under the agreement by getting the court to declare rescission, though it is unlikely to award you full damages you have paid to date since you've haduse of the car - but you could certainly claim back any sums paid following you realising there was a misrep or however many months you have paid since. That way if you continue to pay and the court doesn't find in your favour, you can continue as normal whereas if you terminate now they can claim wrongful termination and accelerate the payments under the contract.

It's really up to you which way you want to go but the agreement is pretty poor and there are a number of anomalies contained in it, not to mention any misrepresentation on the brochure and what you were told. If there was someone with you when you were told about the 12k mileage question then that would strengthen your claim if it went to court.

Nothing stopping you from writing to the Advertising Standards Authority and reporting the marketing material and also Trading Standards. The FCA is also looking at the way dealerships sell to consumers and they might be interested in your problem as an example of potential mis-selling in that the brochure says one thing but the heading says another.

[Amethyst]

Re: VT advice motorloan balloon

For ref re R0bs post about the FCA's current work - https://www.fca.org.uk/news/news-sto...-motor-finance

[pt2537]

Re: VT advice motorloan balloon

I cannot really read these docs, it seems to me however that its headed fixed sum loan agreement, so on the face of it it seems that the option to VT may be off the table.

[Summerhayes]

Re: VT advice motorloan balloon

Hi I am going through the same thing. I have a car through Fiat and I phoned today to get a settlement figure and had money waiting to get the finance to 50% so I could VT the car. I was told I can't because it's on a motor loan Balloon not pcp. A long story but I am basically paying nearly £20,000 for a car that's now worth £6,000 And still owe £11,000. I had never heard of this Balloon payment. I seriously thought my car was on pcp. Heart Broken